Introduction
While the Covid-19 pandemic has walloped many segments of the Triad economy, the for-sale housing sector has surged.
As employers shifted employees to work-from-home arrangements, many homeowners have taken advantage of low interest rates to either remodel the homes they’re in or to purchase larger homes. High demand has put serious pressure on the inventory of homes on the market, which means more homeowners are putting their homes on the market, while builders are ramping up development efforts.
The Triad is increasingly appealing for builders who find less competition here than in saturated markets, and land more affordable than in larger metros. In recent weeks, PulteGroup, the nation’s third-largest builder, announced it is returning the Triad after leaving in the early 2000s, while Pennsylvania-based Fine Line Homes entered the market by acquiring a local builder.
Together, those trendlines spell opportunity for a Design+ by Cassandra Michelle, a Winston-Salem design studio that is equipped to work virtually with homeowners, remodelers and custom builders, as well as businesses grappling with how to redesign for the future.
Story
It was supposed to be the luckiest of days.
Cassandra Michelle Brunson was set to open the doors of her business, an interior design studio and showroom, in the heart of downtown Winston-Salem, on St. Patrick’s Day 2020. Instead, Covid-19 shutdown orders stymied her big day – and then threatened to crush the sustainability of her years-long dream.
“I felt like a failure because I was disappointing the people hired to come work for us,” she said. “I was disappointing the city. And at that point we didn't know that things were going to be forgiven or payments postponed … When a few weeks went into a few months, the panic started setting in. But then also the creativity started flowing.”
With no foot traffic to sell retail and few willing in a pandemic to visit the studio for services, she pivoted to e-design services to cater to the burgeoning number of people remodeling their homes or buying bigger homes. She realized that virtual design dramatically opened up opportunities to serve not just as a one-stop-shop for homeowners, but to serve homebuilders and general contractors locally — and nationally — by walking clients through the time-consuming process of designing their space, choosing fixtures and selecting finishes.
Design+ contracts with builders to take on those duties for a set fee based on the number of homes and square footage. The homebuyer is spared from driving to 12 different locations evaluating options.
"We also provide 3D rendering services, which allows the clients to see their spaces and all the finishes that they have selected in a photo realistic image, before the hammer hits the wall,” she said. “So the builder is not constantly dealing with change orders and buyer's remorse, which becomes costly and a lot of heartache.”
With a bachelor’s in home furnishings marketing from High Point University and an interior architecture degree from UNC-Greensboro, Brunson crafted her vision for Design+ from her years in furnishings with Natuzzi and Heritage Home Group, as well as working in retail flooring.
“That one-stop shop idea kept popping in my head, putting together all these little job opportunities I’ve had, and making them into something where I could really utilize my total skill set,” she said.
Of course, Design+ has a steep hill to climb. The company, funded by her own equity and a $100,000 low-interest revitalization loan from the city ($25,000 of which is forgivable), lost about $50,000 in its first year, said Corry Brunson, Cassandra’s husband, who leads sales and marketing efforts.
But sales in February were 10 times higher than January, and the company is finalizing a deal with a Texas-based company, BDX, that specializes in digital marketing for builders. Design+ is targeting 10 builders initially, hoping to scale to 25 over the next two years. He projects that if Design+ secures five, just half of its initial target, the company could approach almost $1 million in revenue by the end of 2021.
"Last year was a difficult year for just about everybody, especially startups,” said Corry Brunson, also a financial analyst for PepsiCo. “Taking a $50,000 loss, we had to eat that, but I think about the opportunities for us coming out of this, building these relationships and partners. I definitely think we’ll hit our marks. We’re heading in the right direction.”
Meanwhile, there’s ample opportunity as well on the commercial side, as employers grapple with space planning in a Covid-19 era.
“I love commercial,” Cassandra said. “If I had to do it in percentages I would want commercial to be 60/40. And right now, it’s the other way.”
Design+ by Cassandra Michelle Fast Facts
What it does: Residential and commercial interior design, builder services
Employees: 3½ initially, but now 2, interviewing to add a full-time position
Founded: 2020
Location: Winston-Salem
The outlook: The startup is poised to grow as Covid-19 fuels demand for both residential remodeling and new home construction, as well as commercial renovations.
